SME Bank launches ops in Saudi, signs SAR 3 bln agreements

Logo of Small and Medium Enterprises Bank (SME Bank)

The Small and Medium Enterprises Bank (SME Bank), one of the development funds and banks affiliated with the National Development Fund (NDF), officially launched operations today, Dec. 4.

The SME Bank will sign 15 cooperation and partnership agreements with banks, financing providers and information technology firms at a total value of SAR 3 billion, Saudi Press Agency reported, citing Mohammed Al-Tuwaijri, NDF Vice-Chairman.

In the same vein, SME Bank CEO Mazen Alghanim pointed out that the SME industry witnesses increasing demand for the financing products, and the bank products were designed to fulfill the market requirements and provide the industry with innovative packages, in line with the best international practices.

The bank introduced six products to finance SME industry, including a program to finance e-stores, medium-term loans, short-term financing products, microfinance products and credit cards.

Earlier in November, Saudi Arabia’s Cabinet approved the SME Bank, which aims to support and develop the sector by providing solutions, services and financing products. The bank also seeks to raise the productivity of the SMEs and increase their contribution to GDP from 20% to 35% by 2030, Argaam reported.